The power of purpose: how social impact can become your brand’s biggest asset
Sustainability and circularity are fast becoming two of the biggest purchase drivers in retail. Today, as many as 72% of European shoppers want retailers to behave in environmentally friendly ways. And according to PwC research, “consumers are willing to spend an average of 9.7% more on sustainably produced or sourced goods, even as cost-of-living and inflationary concerns weigh.”
Meanwhile, 69% of employees want their companies to match their values and invest in sustainability efforts. Not only is circularity a good practice – it’s increasingly becoming a brand and business advantage.
However, just 6% of retailers selling to Europe have a team focused on Corporate Social Responsibility (CSR) or sustainability. Soles4Souls research also identified that as many as a quarter of UK apparel and footwear retailers manage their overstock by sending it to landfill. To remain relevant in today’s increasingly eco-conscious landscape, fashion brands must embrace circularity and social impact as brand assets to appeal to modern consumers and employees.
Purpose and impact underpin your brand’s success
As much as 63% of a company’s market value is now based on its reputation, according to a Weber Shandwick study. CSR is not simply a box-ticking exercise – brands who differentiate themselves through social impact initiatives unlock accelerated value and bottom-line results. In fact, research by Zeno found that when consumers think a brand has a strong purpose, they are:
- 4 times more likely to purchase from the company
- 6 times more likely to protect the company in the event of a misstep or public criticism
- 4.5 times more likely to champion the company and recommend it to friends and family
- 4.1 times more likely to trust the company
It’s no surprise, then, that social return on investment (SROI) is rivalling traditional ROI as a methodology for measuring the value of an organisation’s activities. An SROI metric helps to evaluate and quantify social investments. For instance, while establishing a free-to-use apparel repair program may seem costly, the long-term boosts to social and economic value, such as the free program becoming a purchase driver for more customers, may well outweigh its original price tag.
With that in mind, let’s explore some quick wins that your business can use today to start building social impact and brand value.
Kick-start your social impact initiatives today
First up is the management of overstock. While selling it to liquidators or sending it to landfill can damage brand value, recycling it or donating it to a nonprofit organisation will show stakeholders you care about both the planet and people.
In particular, by ensuring that those facing crisis or poverty get access to essential shoes and clothing, you demonstrate a commitment to social responsibility that goes beyond lip service. This is crucial in helping to foster trust, goodwill, and a positive reputation among customers.
Similarly, a robust end-of-life product plan – in which you repair your customers’ clothing and footwear or recycle it on their behalf – shows a clear dedication to product longevity and long-term customer satisfaction. More importantly , it helps to minimise unnecessary waste. Brands can go a step further by offering vouchers or similar initiatives to incentivise customer uptake.
However, your efforts shouldn’t solely focus on consumers; your employees represent an equally powerful engagement avenue. Showing your workforce that you share its values around circularity and sustainability helps to strengthen their connection to the organisation and enhance job satisfaction and retention. That’s why setting up team-building activities, awards, volunteering, shoe drives, employee resource groups, and more can help your employees feel invested and involved in making a positive difference to circularity.
Alongside the incredible social impact of these initiatives, their low barriers of entry and easy configuration are near-guaranteed to pay brand dividends in the long run. After all, the feel-good aspect for employees, who are able to engage in a small act that has a big impact, fosters outstanding satisfaction and retention. Companies that demonstrate a genuine commitment to sustainability enjoy a 16% higher employee engagement than those without.
Engaging every stakeholder will multiply your impact
Partnering with Soles4Souls to host a shoe drive offers an easy entry point for engaging your employees, providing opportunities for people in need, and safeguarding the environment.
A shoe drive involves collecting new or gently used shoes for charitable donation. A Soles4Souls representative will provide all the resources you’ll need to invite people to participate and maximise your impact. Beginning with employee donations of gently used or unused shoes, we’ll begin funnelling the shoes to people in low-incomecountries, where entrepreneurs can sell them to provide for their family and get shoes to people at a price they can afford.
The trade-in promotion offered by KINIS, the active lifestyle company, is a best-in-class example of a shoe drive in practice. Once a customer adds a pair of new KINIS shoes to their cart, they can send a picture of their used shoes to the brand to unlock a $15 discount. The customer can then either drop their used shoes off at KINIS or send in their trade for free.
These shoes are then sold and distributed through international partners to help people in low-income countries build small businesses and escape poverty. Across our operations in Guatemala, Honduras, Haiti, Moldova, and the Philippines, entrepreneurs have been able to increase their household income by more than 200%. 90% of entrepreneurs are able to send their children more regularly to school, and 1 in 4 can purchase a home through selling shoes. What’s more, the life of a used pair of shoes is extended by at least 15 months on average, bolstering our corporate partners’ circularity credentials.
“Prior to selling shoes through Soles4Souls, I was unable to care for my family. One pair can help me send my kids to school, help feed my family, and bring joy to my kids and husband. I, and other women like myself, have been able to regain control of our lives.”
Social impact is the new brand currency
Ultimately, we’re now living in an era of heightened social awareness. Companies need to champion issues such as sustainability and community impact to attract brand loyalty and new customers. Retailers who invest in circularity, via extending their products’ lifetimes and supporting communities in need, can meet growing employee and customer expectations and differentiate themselves from competitors. Today, social impact is a key part of a brand’s value – not a distraction from it.
To learn more about partnering with Soles4Souls, please contact alexgilbert@soles4souls.org.